Demonetisation: 2 Axis Bank managers under I-T Department lens for reportedly helping to convert black money

Cracking down on banking staff who are allegedly helping people convert their black money into white, the Income Tax Department has conducted a survey at the Kashmere Gate branch of Axis Bank in Delhi. According to various reports, the I-T department has conducted searches at the residences of two bank managers of Axis Bank. The searches happened after two people were caught with Rs 3.5 crore in new currency notes. These people admitted that they converted money with the help of two of the bank managers, whose residences are now being searched. According to Axis Bank, it is fully cooperating with the I-T department and is also investigating the matter in detail. The deposits were reportedly made in existing accounts of our customer at the Kashmere Gate Branch.

The government has warned that those who are using other people’s bank accounts to convert their black money will be severely punished. Not only that, those who allow their accounts to be misused for this purpose will also face prosecution. The Finance Ministry said has said, “Tax evasion activities by some people using other persons’ Bank A/Cs to convert their black money can be subjected to income tax & penalty. Also the person who allows his or her bank account to be misused for this purpose can be prosecuted for abetment under Income Tax Act.” The Finance Ministry’s warnings come in wake of reports that people are misusing JanDhan accounts to deposit their black money, paying a premium to the poor person who is allowing his/her bank account to be used. “However, the genuine persons having their own household savings in cash and depositing the same in the bank would not be questioned. People are requested NOT to come in the lure of black money converters & be a partner in this crime of converting black money into white,” the Finance Ministry said.

Meanwhile, the Cabinet tonight is believed to have discussed amending laws to levy around to 60% income tax on unaccounted deposits in banks above a threshold post demonetisation of high-denomination currency notes. The move comes amid banks reporting over Rs 21,000 crore being deposited in zero-balance Jan Dhan accounts in two weeks after the 500 and 1,000 rupee notes were banned, which authorities apprehend may be the laundered blackmoney.

Axis Bank